Question

An account balance is:Select one:a. The total of the credit side of the account.b. The total of the debit side of the account.c. The difference between the total debits and total credits for an account including the beginning balance.d. Assets = liabilities + equity.is. Always a credit.

Answer 1

The account balance is the difference between the total debits and total credits for an account, including the beginning balance. It is integral to understanding a T-account, which reflects the financial position of an entity such as a bank, where assets must equal liabilities plus net worth.

Step-by-step explanation:

An account balance refers to c. The difference between the total debits and total credits for an account including the beginning balance. This takes into account the financial transactions recorded on both sides of a T-account, a tool used to visualize the effect of transactions on individual ledger accounts. In a T-account, the left side consists of debits while the right side consists of credits, and the difference between the total debits and credits, including the beginning balance, gives the account balance.

In banking, this concept is reflected in the bank's balance sheet, where the assets must equal the sum of liabilities and net worth, adhering to the accounting equation Assets = Liabilities + Equity. Assets include holdings like reserves and loans issued, while liabilities cover deposits and other amounts owed. The net worth or equity represents the bank's capital, which is the residual interest in the assets after liabilities have been deducted.

Answer 2

c. The difference between the total debits and total credits for an account including the beginning balance.

Step-by-step explanation:

An account wil be a concept of reality represent under a given label which, contains information about transaction that modifies their valuation in the company.

This means, there is something that can be measure in a monetary units.

There are transaction which increase their total value

and transaction which decreases his value.

All those transaction combined generate an ending balance, which is the state of the account at the given date.

For example

Mechandise Inventory: this account represent the inventory ready to sale for the business.

purhcase of inventory increase this account

sales from the business activities decreases it.

the ending balance will be the net effect fo the purchase and sales.